Review By on March 16, 2017
Bohra Industries Ltd (BIL) is an ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certified company engaged in manufacturing of Single Super Phosphate (SSP) both in powder and granulated forms. Its plant is located at Udaipur, Rajasthan. Its product is sold under the brand name “MAHALAXMI” in 17 states through direct and in-direct channels. BIL has signed MoUs with many giants for supply of SSP. Company has up the sleeve expansion plans for SSP from 120000 mtpa to 300000 mtpa and mulls diversification in the production of Triple Super Phosphate (TSP), Food grade Phosphoric Acid and Nitrogen Phosphorous and Potassium (NPK).
To part finance its purchase of equipments and machinery for expansion, working capital and general corpus fund needs, the company is coming out with a maiden IPO of 4572000 equity share of Rs. 10 each via book building route with a price band of Rs. 51-55 ( to mobilize around 25.14 crore at the upper price band). Issue opens for subscription on 23.03.17 and will close on 27.03.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. From 1996 to 2010 it issued all equity at par. In December 2016 it raised further equity at a price of Rs. 43 per share. Post issue its current paid up equity capital of Rs. 10.67 crore will stand enhanced to Rs. 15.24 crore.
On performance front, it has posted turnover/net profits of Rs. 75.20 cr. / Rs. 5.52 cr. (FY13), Rs. 90.46 cr. / Rs. 5.37 cr. (FY14), Rs. 96.32 cr. / Rs. 4.32 cr. (FY15) and Rs. 113.00 cr. / Rs. 4.51 cr. (FY16). Thus for last two fiscals despite growth in top line, its bottom line has declined. For the first half of the current fiscal it has earned net profit of Rs. 2.62 crore on a turnover of Rs. 50.14 crore. If we annualize latest earnings and attribute it to fully diluted equity post issue then asking price is at a P/E of around 16 plus and at a P/BV of 1.1 plus making it fully priced offer.
On merchant banker’s front, this is the 40th mandate from its stable and past mandates have shown mixed trends. However, last 10 issues have shown positive trends on listing dates.
Conclusion: Issue appears to be fully priced hence investors may invest at their own discretion with a long term outlook.
Review By on March 16, 2017
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Bohra Industries Ltd. offers an early investment opportunity in Bohra Industries Ltd.. A stock market investor can buy Bohra Industries IPO shares by applying in IPO before Bohra Industries Ltd. shares get listed at the stock exchanges. An investor could invest in Bohra Industries IPO for short term listing gain or a long term.
Read the Bohra Industries IPO recommendations by the leading analyst and leading stock brokers.
Bohra Industries IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Bohra Industries IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Bohra Industries IPO?"
Our recommendation for Bohra Industries IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Bohra Industries IPO.
The Bohra Industries IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Bohra Industries IPO allotment status to check.
